Women are excluded from leadership in the metaverse |  McKinsey

Women are excluded from leadership in the metaverse | McKinsey

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In the nascent metaverse, women are being excluded from leadership roles, according to a new report from consulting firm McKinsey & Co.

The company said it saw five early metrics on women in the Metaverse that reveal gender inequality — particularly in leadership creating and setting Metaverse norms. McKinsey estimates the metaverse will be worth $5 trillion by 2030.

Of course, many experts believe that the metaverse – a 3D-animated, synchronous, massively scalable real-time Internet – isn’t here yet. But the firm refers to metaverse type applications. The report was authored by Mina Alaghband and Lareina Yee of McKinsey.

“The Metaverse is still in its infancy. Even its definition remains fluid and is likely to continue to evolve. But the consensus, at least today, is that the metaverse is the next iteration of the internet, in which the internet becomes something people immerse themselves more deeply in rather than something they simply see: an evolution of 2D to 3D through a range of interfaces, including augmented reality (AR) and virtual reality (VR),” McKinsey said. “As with other transformative technologies, such as cloud and AI, whose evolutions have spanned decades, the metaverse’s early consumers and leaders, including investors and CEOs, will shape its future.”

What role will women play?

Women are more active in the metaverse.

McKinsey said it aims to better understand how gender dynamics play out in the metaverse at an early stage by looking at a range of data, including that collected for McKinsey’s own June 2022 report on value creation in the metaverse.

“We found an already noticeable gender gap in the metaverse, similar to the gap that exists in Fortune 500 companies and startups, where less than 10% of Fortune 500 CEOs are women, only 17% of venture capital (VC) dollars go to women from women-led and co-led businesses, and only 15% of venture capital sponsors in the United States are women,” the report states.

The report states that the reality is that women spend more time in the proto-metaverse than men and, according to data from McKinsey, are more likely to lead and implement metaverse initiatives. However, just like in the tech industry as a whole, women are a minority in the metaverse economy. The roles of entrepreneurial capital and CEO in the metaverse space remain disproportionately reserved for men.

More women than men are power users in the metaverse

Metaverse consumer research showed that 41% of women had used a primary Metaverse platform or participated in a digital world for more than a year, compared to 34% of men. Additionally, more women are spending significant time in the Metaverse: 35% of women surveyed are power users, spending more than three hours a week in the Metaverse, compared to 29% of men.

McKinsey said the research also reveals that women are more likely than men to engage in hybrid use cases in the metaverse, traversing both the physical and digital worlds to participate in activities such as games. , fitness, education, live events and shopping via AR/VR technologies. . In contrast, men use the metaverse to participate in purely digital experiences such as gaming, exchanging non-fungible tokens (NFTs), and attending social events.

Women lead and implement more metaverse initiatives

In a survey of nearly 450 senior executives, 60% of women said they had implemented more than two metaverse-related initiatives in their organizations. Figures show that these female executives are 20% more likely than their male counterparts to implement several metaverse initiatives, particularly in marketing, employee learning and development, and product design.

But female leaders are rare in the emerging economy of the metaverse

Metaverse businesses are largely run by men.

While female consumers and executives are more proactive about Metaverse usage and initiatives than male consumers and executives, women are still excluded from leadership roles in the Metaverse economy. McKinsey research shows that over the past five years, male-led Metaverse companies received a higher share of total entrepreneurial funding than female-led Metaverse companies.

Female executives are more likely than their male counterparts to have multiple metaverse initiatives in place at their companies. Over the past five years, companies in the metaverse that received higher funding shares were disproportionately led by men. Female consumers and executives are more proactive about Metaverse usage and initiatives, but women are still excluded from leadership roles in the Metaverse economy.

Metaverse normalization groups are led by men.

In organizations that shape the norms of the Metaverse, 90% of leadership positions are held by men. A number of standards organizations are emerging to establish interoperability standards for the Metaverse – among them the Metaverse Standards Forum and the Open Metaverse Alliance for Web3 (OMA3). But only about 8-10% of member organizations are led by female managers. This percentage is similar to the roughly 9% of Fortune 500 companies run by women today.

Organizations that participate in metaverse forums that are currently shaping future interoperability standards are disproportionately led by men, according to the report.

The Metaverse has the potential to bring profound change to the global economy, as well as create new, more equitable opportunities for all who use it – which is why it is imperative that all key stakeholders understand the dynamics at stake. Early indicators suggest that women may already be a powerful userbase of the metaverse, McKinsey said.

It is therefore of paramount importance to close the existing gender gap in leadership roles while the metaverse is still in its formative phase. To do this, industry stakeholders will need to engage a range of different voices and infuse diverse leadership into the companies and coalitions shaping the metaverse today, McKinsey said.

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